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but was this always the case?
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Posted by Snowmobile [Email] (#686) [Profile/Gallery] (more from Snowmobile) on Tue, 15 Apr 2014 13:27:22 Share Post by Email
In Reply to: Re: The Chinese have this strategy also..., dtechakacheaptech, Tue, 15 Apr 2014 11:02:13
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I think you'll find that the reason for this is the natural evolution of these businesses and the economy in South Korea. They've done really well, and now they are entering a fatter less efficient mode as they mature and move up market. Boom, bust and echo. GM was once an efficient operation, but look at it now! Japan was a source of cheap production, then flattened out and started outsourcing and Korea is just following this (eg Samsung washers are made in China, not Korea)... but the $$ follows the manufacturing! this is what has caused the US grief: it was easier to outsource the manufacturing of stuff to cheaper labour markets than to find efficient ways to produce stuff. Outsourcing production outsources test and process and product engineering, and eventually design, and you're left with an empty shell and a trained competitor.

I remember in grad school (almost 20 years ago now) talking to a Korean colleague, and he said, watch out for the Korean car manufacturers - they will dominate in a few years... pretty good insight!

The difference with China is it's population is huge! It will take a long time to saturate the appetite for low salaries, though that is happening in some larger cities.

->Posting last edited on Tue, 15 Apr 2014 13:28:41.

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